Notice received Service tax on labour supply

[Xyz Wbc]

I was a proprietor in 2016-17 and supplied a manpower for house keeping, gardening, nurses and doctors etc to one private limited hospital. I registered for service tax also but not filed returns due to RCM. I received a notice in 2021 from service tax for enquiry about my turnover from IT return. I replied that since I am proprietor and hospital is Pvt Ltd I am not liable to pay service tax.The matter was stopped but again in 2024 I received a notice from Kolhapur office I submitted my bills which was not in invoice format, Bills was like all person name salary and gross total pay and 5% service charge was added, TDS was deducted @1% and rest amount was transferred to my bank.I also submitted bank statement which was confirmed the payment as per bills Now service tax officer want agreement and ledger of hospital Hospital is not providing any details. I also don't remember that agreement was signed or not?.

What to do weather I am liable to pay service tax.

If agreement is exist and charges inclusive all taxes is written in agreement what will happen.

Please advise

AI Summary

Reverse charge liability: recipient must discharge service tax for manpower supply; provider must produce records or face recovery.
Supply of manpower to a private hospital falls under the reverse charge mechanism, so the recipient bears service tax liability; the provider must produce books, bills and any agreement to demonstrate RCM applicability, otherwise the department may recover tax from the provider under the forward charge with interest and penalty. A clause "inclusive of all taxes" suggests tax was collected as part of consideration and strengthens recovery claims; verbal agreements are valid if supported by documents.